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Compugen Ltd. (CGEN) Message Board

  • sbh3117 sbh3117 Feb 22, 2013 3:28 PM Flag

    Example of lucrative early stage drug deal

    Hi everybody,

    I posted this a couple months ago, but since it was mentioned in the corporate presentation released on Wednesday, I thought I would post it again to give some details on an early stage drug deal:

    "Here’s a recent deal of interest to Compugen investors (from a FierceBiotech article—sorry the message board no longer permits links, so you'll have to Google the article):

    'Preclinical data snags GlaxoSmithKline's attention in $335M cancer immunotherapy deal

    Collaboration covers antibodies that could boost anti-cancer immune response

    Preclinical research into cancer immunotherapy at the University of Texas MD Anderson Cancer Center has caught the attention of global pharmaceutical company GlaxoSmithKline. This has resulted in the signing of a research collaboration and licensing agreement that could be worth $335 million in upfront, milestone and royalty payments…

    …The agreement validates MD Anderson's translational medicine approach, but the development is still at a very early stage and could be many years from the clinic. Translational medicine (translating preclinical research into clinical products) is key for pharmaceutical companies, especially as the patent cliff approaches, costs of drug development rise and companies look for new products to add to their R&D pipelines.'"


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    • Below other examles from page 26 of cgen presentation. You have to be careful in that these programs were at various stages of development. To me the most important is upfront money. Some of these look pretty good......Peace

      Under the terms of the agreement, Daiichi Sankyo will pay Amplimmune an undisclosed option fee and provide more than $50 million to reimburse past and planned research and development costs for AMP-110 including funding for future development through a Phase 2 (Proof of Concept Study, hereafter, POC study). Amplimmune also will be eligible to receive additional program milestone payments during the collaboration period. Through the POC study, Daiichi Sankyo will have an exclusive option to acquire the AMP-110 program.
      In a statement,

      ImmuNext said that it has entered into an agreement with Horsham, Penn.-based Janssen Biotech, Inc., which is owned by Johnson & Johnson, for an exclusive, worldwide licence for VISTA, the company’s potential treatment for several immune-related diseases, including cancers and autoimmunity. ImmuNext will receive an upfront payment, plus payments for reaching certain development and commercial-based milestones, which could total more than $150 million, and is also eligible for royalties on sales of products and sponsored research support.

      Under the terms of this agreement, GSK will pay Amplimmune a non-refundable upfront payment of $23 million. Amplimmune is eligible to receive up to $485 million in regulatory, development and sales milestone payments - including milestones associated with IND filing and conducting a Phase 1 trial of AMP-224. Amplimmune may also receive up to double digit royalties on global sales

      Innate Pharma received an upfront payment of $35 million at the signing of the agreement in July 2011. The Company is eligible to additional payments of up to $430 million, depending on the achievement of pre-specified milestones during the development and commercialization period, as well as pre-specified tiered double-digit royalty payments on worldwide net sales.

      MacroGenics will receive a $20 million upfront payment. If Servier exercises its option upon completion of the Phase 1 study and its expansion cohorts, MacroGenics will receive an option exercise fee which, combined with the up-front and early development milestone payments, will total $60 million. In addition, MacroGenics could receive up to an additional $390 million in clinical, regulatory and commercialization milestone payments. Finally, MacroGenics may receive tiered, double-digit royalties on future net sales. Both parties will share the clinical development costs following the option exercise

    • sbh,
      I was trying to post a similar message last night when I wrote that the latest presentation shows examples of comparable collaborations on slide 26 where each example from those other biotechs shows these deals bring in hundreds of millions of dollars. I think this is the 1st time CGEN has hinted at the possible size of what they are seeking, and the potential revenue is enormout - enought to double our market cap in a day..

      Sentiment: Strong Buy

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